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Segments and Geographic Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segments and Geographic Information

(6) Segments and Geographic Information

The Company and its subsidiaries currently operate in two segments, product and service. The product segment oversees the supply chain and manufacturing of Crinone, the Company’s sole commercialized product. The service segment includes product development, clinical trial manufacturing, and advanced analytical and consulting services for the Company’s customers as well as characterizing and developing pharmaceutical product candidates for the Company’s internal programs. The Company conducts its advanced formulation, analytical and consulting services through its subsidiary, Juniper Pharma Services, the Company’s U.K.-based provider of pharmaceutical development, clinical trial manufacturing and advanced analytical and consulting services to the pharmaceuticals industry. The Company has integrated its supply chain management for Crinone into those operations and has therefore sought to capture synergies by transferring all operational activities related to its historic business. The Company owns certain plant and equipment physically located at third-party contractor facilities in the United Kingdom (the “U.K.”) and Switzerland.

The Company’s largest customer, Merck KGaA, utilizes a Switzerland-based subsidiary to acquire product from the Company, which it then sells throughout the world, excluding the United States (the “U.S.”).   

The following tables show selected information by geographic area (in thousands):

Revenues:

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

United States

 

$

3,917

 

 

$

2,387

 

 

$

7,459

 

 

$

4,015

 

Switzerland

 

 

9,518

 

 

 

9,759

 

 

 

19,796

 

 

 

17,516

 

United Kingdom

 

 

1,182

 

 

 

1,088

 

 

 

1,975

 

 

 

2,037

 

Other countries

 

 

693

 

 

 

722

 

 

 

1,604

 

 

 

1,635

 

Total

 

$

15,310

 

 

$

13,956

 

 

$

30,834

 

 

$

25,203

 

 

Total assets:

 

 

 

June 30,

2018

 

 

December 31,

2017

 

United States

 

$

20,886

 

 

$

21,683

 

Switzerland

 

 

7,362

 

 

 

1,366

 

United Kingdom

 

 

39,491

 

 

 

38,129

 

Other countries

 

 

29

 

 

 

42

 

Total

 

$

67,768

 

 

$

61,220

 

 

Long-lived assets:

 

 

 

June 30,

2018

 

 

December 31,

2017

 

United States

 

$

345

 

 

$

523

 

Switzerland

 

 

1,257

 

 

 

535

 

United Kingdom

 

 

16,129

 

 

 

15,064

 

Other countries

 

 

3

 

 

 

2

 

Total

 

$

17,734

 

 

$

16,124

 

 

Long-lived assets include fixed assets, intangibles and other assets.

No other individual country represented greater than 10% of total revenues, total assets or total long-lived assets for any period presented.

For the three and six months ended June 30, 2018 and 2017, Merck KGaA accounted for 100% of the product segment revenue. At June 30, 2018 and December 31, 2017, Merck KGaA made up 100% of the product segment accounts receivable.

For the three and six months ended June 30, 2018 and 2017, the same customer accounted for 41% and 28% and 37% and 23% of the service segment total revenue, respectively.  No additional customers accounted for 10% or more of the service segment total revenue for the three or six months ended June 30, 2018 and 2017.  At June 30, 2018 and December 31, 2017, one customer accounted for 47% and 53% of total service segment accounts receivable, respectively.

The following summarizes other information by segment for the three months ended June 30, 2018 (in thousands):

 

 

 

Product

 

 

Service

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

9,343

 

 

$

 

 

$

9,343

 

Service revenues

 

 

 

 

 

5,717

 

 

 

5,717

 

License revenues

 

 

250

 

 

 

 

 

 

250

 

Total revenues

 

$

9,593

 

 

$

5,717

 

 

$

15,310

 

Cost of product revenues

 

 

6,158

 

 

 

 

 

 

6,158

 

Cost of service revenues

 

 

 

 

 

2,959

 

 

 

2,959

 

Total cost of revenues

 

$

6,158

 

 

$

2,959

 

 

$

9,117

 

Gross profit

 

$

3,435

 

 

$

2,758

 

 

$

6,193

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

8,136

 

Total non-operating income

 

 

 

 

 

 

 

 

 

 

729

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

$

(1,214

)

 

The following summarizes other information by segment for the three months ended June 30, 2017 (in thousands):

 

 

 

Product

 

 

Service

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

9,569

 

 

$

 

 

$

9,569

 

Service revenues

 

 

 

 

 

4,387

 

 

 

4,387

 

Total revenues

 

$

9,569

 

 

$

4,387

 

 

$

13,956

 

Cost of product revenues

 

 

5,303

 

 

 

 

 

 

5,303

 

Cost of service revenues

 

 

 

 

 

2,347

 

 

 

2,347

 

Total cost of revenues

 

$

5,303

 

 

$

2,347

 

 

$

7,650

 

Gross profit

 

$

4,266

 

 

$

2,040

 

 

$

6,306

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

6,662

 

Total non-operating expense

 

 

 

 

 

 

 

 

 

 

(20

)

Loss before income taxes

 

 

 

 

 

 

 

 

 

$

(376

)

 

 

 

The following summarizes other information by segment for the six months ended June 30, 2018 (in thousands):

 

 

 

Product

 

 

Service

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

19,417

 

 

$

 

 

$

19,417

 

Service revenues

 

 

 

 

 

11,167

 

 

 

11,167

 

License revenues

 

 

250

 

 

 

 

 

 

250

 

Total revenues

 

$

19,667

 

 

$

11,167

 

 

$

30,834

 

Cost of product revenues

 

 

12,174

 

 

 

 

 

$

12,174

 

Cost of service revenues

 

 

 

 

 

5,969

 

 

$

5,969

 

Total cost of revenues

 

$

12,174

 

 

$

5,969

 

 

 

18,143

 

Gross profit

 

$

7,493

 

 

$

5,198

 

 

$

12,691

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

13,618

 

Total non-operating income

 

 

 

 

 

 

 

 

 

 

485

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

$

(442

)

 

The following summarizes other information by segment for the six months ended June 30, 2017 (in thousands):

 

 

 

Product

 

 

Service

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

17,295

 

 

$

 

 

$

17,295

 

Service revenues

 

 

 

 

 

7,908

 

 

 

7,908

 

Total revenues

 

$

17,295

 

 

$

7,908

 

 

$

25,203

 

Cost of product revenues

 

$

9,617

 

 

$

 

 

$

9,617

 

Cost of service revenues

 

 

 

 

 

4,590

 

 

 

4,590

 

Total cost of revenues

 

$

9,617

 

 

$

4,590

 

 

$

14,207

 

Gross profit

 

$

7,678

 

 

$

3,318

 

 

$

10,996

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

12,807

 

Total non-operating expense

 

 

 

 

 

 

 

 

 

 

(6

)

Loss before income taxes

 

 

 

 

 

 

 

 

 

$

(1,817

)